FMCG leads ad spends with 30% share; e-commerce records fastest growth: dentsu-e4m report

FMCG continues to dominate India’s advertising industry, accounting for 30% of total ad spends at Rs 36,084 crore, according to the latest dentsu-e4m Digital Advertising Report 2026. High-frequency consumption categories and sustained competition across staples and personal care continue to drive investments from the sector.

E-commerce follows as the second-largest advertising vertical with an 18% share, translating to Rs 22,132 crore in spends. The category also emerged as the fastest-growing advertiser in 2025, recording a 40.8% year-on-year increase, reflecting its growing scale and aggressive customer-acquisition strategies.

Automotive advertising contributed 7% of total spends at Rs 7,821 crore, supported by renewed demand across both electric vehicle (EV) and internal combustion engine (ICE) portfolios. Consumer durables followed with a 6% share at Rs 7,450 crore, while pharmaceuticals and BFSI each accounted for 4% of total ad spends at Rs 4,933 crore and Rs 4,830 crore respectively.

Among mid-sized contributors, real estate (Rs 3,857 crore), education (Rs 3,847 crore), retail (Rs 3,676 crore), telecom (Rs 3,647 crore) and government advertising (Rs 3,421 crore) each commanded a 3% share of overall spends. Media and entertainment accounted for 2% at Rs 2,560 crore, while tourism contributed 1% at Rs 918 crore. The ‘others’ category made up 13% of ad spends, amounting to Rs 16,162 crore.

The report notes that telecom advertising grew by 24.2% in 2025, driven by 5G-enabled service diversification and content-led bundling. BFSI, automotive and real estate also recorded steady increases in advertising investments as consumer sentiment and credit availability improved.

According to the report, growth across these sectors has been fuelled by the rapid expansion of e-commerce logistics and quick-commerce models, increased 5G-led service diversification in telecom, and BFSI’s push towards digital payments, credit products and insurance penetration. Real estate and automotive have benefited from urban demand recovery, premiumisation trends and improved financing conditions.

Collectively, these developments, supported by regulatory openness and broader digital enablement, have intensified sectoral visibility and accelerated digital advertising investments, reinforcing a market where high-growth, digitally enabled sectors are reshaping India’s advertising landscape with scale, speed and precision.